Spring Property Surge: What Brokers Should Do in Light of Increased Listings
As spring approaches, the Australian property market is gearing up for its busiest season of the year with increased listings. Historically, this time of year sees a significant rise in property listings and sales, and 2024 appears to be following suit. Emerging data showcases an increase in pre-approvals and auction activity for Australian home buyers, where these homebuyers are turning to mortgage brokers to access finance. Mortgage brokers should be prepared as spring is forecasted to be the busiest selling season of the year.
Mortgage brokers have a golden opportunity to capitalise on the heightened market activity. However, with economic conditions still tempering the market, brokers need to be strategic in their approach to ensure they can meet client needs and maximise opportunities.
Spring Activity: What the Data Shows with Increased Listings
According to CoreLogic, spring typically brings an 18.2% increase in property listings across Australia (according to the decade average), with sales rising by 8.3%. Cities with colder winters, such as Melbourne and Sydney, experience the largest uptake in activity. This year, Melbourne is expected to see a 26.7% increase in listings and a 10.5% rise in sales, while Sydney is forecasted to have a 20.3% increase in listings and a 10.4% boost in sales. Hobart is also expected to see significant activity, with a 27.9% increase in listings and a 12.3% rise in sales.
Despite economic challenges like high interest rates and low consumer confidence, auction volumes are rising, with around 2,300 auctions expected this week alone. Moreover, real estate data indicates that new home listings reached their highest record in July this year, and are higher annually for the fourth consecutive month. This is just providing further evidence that the market is heating up!
Brokers, How Can You Leverage the Spring Market Surge?
As the market ramps up, mortgage brokers should position themselves proactively to take full advantage of the increased market activity. Here are some key strategies to consider:
1) Prioritise Pre-Approvals
With property listings on the rise, pre-approvals are becoming increasingly important for Australian home buyers. Pre-approvals are a crucial first step for buyers, and with the rising number of property listings means a rising number of home buyers seeking their next move. Brokers should focus on helping their clients secure pre-approvals to ensure they can move quickly when the right property comes along.
Its also important to keep in mind that with the competition heating up, many buyers may not find a property quickly. If pre-approvals expire, its essential to support your clients appropriately. According to recent data as presented in The Adviser, 33% of borrowers are needing to secure multiple pre-approvals as they cannot find the right property before their pre-approval expires. Whilst this is believed to be largely due to a lack of appropriate housing supply, there are ways to help your clients find the right property before their pre-approval expires. Partnering with a Professional Property Specialist, such as Matt Ivers from Vision Property Investment, could increase your chances of converting pre-approvals into settlements. It’s a win-win situation!
2) Educate Clients on Market Conditions and the Property Surge
With increased listings, it’s important to educate your clients about the current economic conditions. Buyers may need guidance on how to navigate the higher competitive, particularly with high interest rates and fluctuating consumer confidence that the market is experiencing.
One thing you can educate your clients on is how to negotiate with a real estate agent. With competition fierce, many buyers may negotiate on the same property. This means, the price can increase significantly, until a buyer makes the final highest offer. It’s so important to help your clients set their own boundaries, goals and priorities. Help your clients in determining the maximum price they’re willing to spend on a priority, and ensure this information is only available between you and the client; your client does not want the real estate agent knowing their true maximum price. Otherwise, they can increase the price above their price limit, without another buyer even making an offer.
Consider offering educational resources, such as webinars, blog posts, whitepapers or videos, to help clients better understand the current market dynamics. This can not only build trust with your clients and prospects, but also position yourself as a knowledgeable industry leader.
3) Streamline the Process, Ensure Your Systems are Efficient
Given the expected rise in pre-approval inquiries, it’s crucial to streamline your processes to handle the increased volume efficiently. Ensure that your systems, such as your CRM, are set up to handle multiple pre-approvals simultaneously, and consider leveraging technology to automate routine tasks. This can free up time for more personalised client interactions and allow you to focus on closing deals.
4) Focus on Home Upgraders and First Home Buyers
According to the recent article by The Adviser, home upgraders and first home buyers are leading the charge in pre-approval inquiries this spring. As a broker, this presents an opportunity to tailor your services to meet the specific needs of these groups.
For upgraders, consider offering advice on how to structure their finances to manage both their existing and new mortgages. For first home buyers, provide guidance on government grants and incentives that can help them enter the market.
By tailoring your services to these specific groups, you can better meet their needs and increase your chances of securing their business.
5) Stay Ahead of the Competition
With increased listings, mortgage brokers are going to be more active than ever, and Australian home buyers are going to be looking everywhere to find the right mortgage broker for their needs. It’s important to differentiate yourself from the competition. Focus on providing exceptional service, maintaining strong communication with clients, and staying up to date with the latest market trends. Consider leveraging digital marketing strategies, such as social media campaigns and blog articles, to keep your brand top-of-mind with potential clients.
Did you know blog articles are a key strategy to improving your website’s SEO and appearing higher in Google search results? SEO stands for Search Engine Optimisation and is the process of improving your website to increase its visibility in Google. If someone is searching for mortgage broking and home buying services, you want your SEO to outperform every one else’s. Blog articles can help you do this. By writing content that will not only educate your clients and guide them on this journey, but will display your knowledge and expertise, your post can rank higher and appeal to more site visitors.
Maximise Spring Property Activity with Vision Aggregation
Spring is shaping up to be a busy season for the Australian property market, and mortgage brokers have a unique opportunity to capitalise on the increased activity and property surge. At Vision Aggregation, we understand the demands of this increased market activity, and we are committed to supporting our brokers every step of the way. As Brokers Supporting Brokers, we have the tools, resources and know-how to navigate this spring surge with confidence. Contact us today to see how we can ensure you stay ahead of the competition and convert those pre-approvals into settlements!